World Trade Organization judges ruled that Boeing Co., one of the world’s largest manufacturers of commercial planes, received at least $5.3 billion in illegal subsidies from the United States.
Boeing got $5.3 billion to $6 billion U.S. in subsidies between 1989 and 2006 and $3 billion to $4 billion in potential future aid based on Washington state tax measures, Bloomberg reports.
“This report shows that Boeing has received huge subsidies in the past and continues to receive significant subsidies,” EU Trade Commissioner Karel De Gucht reportedly said in a statement. “These subsidies have resulted in substantial harm to EU interests, causing Airbus to lose sales, depress its aircraft prices and unfairly lose market share to Boeing.”
Boeing’s largest competitor, Airbus and their parent company European Aeronautic, Defense & Space Co., said they suffered $45 billion in lost sales and lower prices due to the aid given to Boeing.
The WTO found nine months ago that Airbus had received billions of euros in government loans. The recent ruling could allow for a settlement between the two airplane manufacturers.